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Iso 20671-3-2023
Iso 20671-3-2023
STANDARD 20671-3
First edition
2023-04
Brand evaluation —
Part 3:
Requirements and recommendations
for brands related to geographical
indications
Évaluation des marques —
Partie 3: Exigences et recommandations pour les marques liées aux
indications géographiques
Reference number
ISO 20671-3:2023(E)
© ISO 2023
ISO 20671-3:2023(E)
Contents Page
Foreword......................................................................................................................................................................................................................................... iv
Introduction..................................................................................................................................................................................................................................v
1 Scope.................................................................................................................................................................................................................................. 1
2 Normative references...................................................................................................................................................................................... 1
3 Terms and definitions..................................................................................................................................................................................... 1
4 Principles of conducting a BGI evaluation................................................................................................................................. 2
4.1 General............................................................................................................................................................................................................ 2
4.2 Transparency............................................................................................................................................................................................ 2
4.3 Consistency................................................................................................................................................................................................. 2
4.4 Objectivity................................................................................................................................................................................................... 2
5 BGI evaluation fundamentals.................................................................................................................................................................. 3
5.1 General............................................................................................................................................................................................................ 3
5.2 BGI elements.............................................................................................................................................................................................. 3
5.2.1 Tangible elements............................................................................................................................................................... 3
5.2.2 Quality elements.................................................................................................................................................................. 3
5.2.3 Innovation elements......................................................................................................................................................... 3
5.2.4 Service elements.................................................................................................................................................................. 3
5.2.5 Intangible elements.......................................................................................................................................................... 3
5.3 BGI dimensions........................................................................................................................................................................................ 3
5.3.1 Legal dimension................................................................................................................................................................... 3
5.3.2 Customer/stakeholder dimension....................................................................................................................... 4
5.3.3 Market dimension.............................................................................................................................................................. 4
5.3.4 Economic and political environment dimension.................................................................................... 4
5.3.5 Financial dimension......................................................................................................................................................... 4
6 BGI evaluation considerations............................................................................................................................................................... 4
6.1 Personnel...................................................................................................................................................................................................... 4
6.2 Practices and processes.................................................................................................................................................................. 4
6.2.1 Identification of the evaluation purpose....................................................................................................... 4
6.2.2 Analysis of the elements and dimensions and selection of the relevant
indicators................................................................................................................................................................................... 4
6.2.3 Application of the methodology............................................................................................................................. 5
6.2.4 Data sourcing.......................................................................................................................................................................... 5
6.2.5 BGI evaluation results.................................................................................................................................................... 5
6.2.6 Annual process and continuous improvement......................................................................................... 5
6.2.7 Financial valuation............................................................................................................................................................ 5
Annex A (informative) Examples of indicators for elements and dimensions of BGIs................................... 6
Annex B (informative) Example checklist of self-assessment of BGIs............................................................................. 9
Annex C (informative) Examples of potential BGIs........................................................................................................................... 10
Annex D (informative) Examples of objectives to consider in the determination of
evaluation procedures................................................................................................................................................................................. 11
Bibliography..............................................................................................................................................................................................................................12
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
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The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO document should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives).
ISO draws attention to the possibility that the implementation of this document may involve the use
of (a) patent(s). ISO takes no position concerning the evidence, validity or applicability of any claimed
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notice of (a) patent(s) which may be required to implement this document. However, implementers are
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www.iso.org/iso/foreword.html.
This document was prepared by Technical Committee ISO/TC 289, Brand evaluation.
A list of all parts in the ISO 20671 series can be found on the ISO website.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www.iso.org/members.html.
Introduction
0.1 General
Geographical indications (GIs) identify a good or service as originating in the territory of a country, or a
region or locality in that territory, where a given quality, reputation, or other characteristic of the good
or service are essentially attributable to its geographical origin. GIs can also highlight specific qualities
of a product or service that are due to human factors that can be found in the place of origin of the
product or service itself, for example traditions and particular productive or professional skills.
In the current context of international markets, the range of products and services offered to users
is almost unlimited. Brands related to GIs (BGIs) are valuable assets as they help the users of these
products and services identify the characteristics, traceability and other information related to its
origin. Examples of potential BGIs can be found in Annex C.
0.2 Brands related to geographical indications (BGIs)
A brand can be defined as the intangible asset, including but not limited to, names, terms, signs, symbols,
logos and designs, or a combination of these, intended to identify goods, services or entities, or a
combination of these, creating distinctive images and associations in the minds of stakeholders, thereby
generating economic benefit/values (see ISO 20671-1:2021, 3.1). GIs can thus be inherently viewed as
brands. The sign tagging a specific GI and the trademark used by a collective or a certification GI are all
intended to trigger a positive association that contributes to the value of a brand. Although traditionally
GIs have been regarded as important as a way of protecting the rights of holders against unfair or
deceptive competition, recognizing that GIs are inherently brands adds another dimension to GIs. BGIs
are important because they can add value in at least three interrelated ways (see ISO 20671-1:2021,
3.2).
— Locality: In an economic environment in which the prevalence of brands marketed globally is
increasing, BGIs are distinctive. They have unique characteristics that distinguish themselves from
so many global brands.
— Authenticity: Consumers are increasingly skeptical of advertising and exaggerated marketing
claims. BGIs can offer goods that are more trustworthy in that they have the authenticity of place.
— Sustainability: BGIs carry a sense of social purpose. The consumer is not only buying a product but
supporting something worthwhile in terms of the values the product embodies. BGIs also often
can support the economic development of a specific group of people. Moreover, BGIs can sustain
traditional knowledge and cultural expressions that can otherwise be lost.
Investments are necessary for BGIs to achieve their potential value. BGIs require the financial support
of branding activities, as does any other kind of brand. In order to make such investments in a fiscally
responsible way, it is necessary for any organization to evaluate BGIs in order to determine if such
investments are creating proportionate increases in brand value.
0.3 BGI system
In whatever form they take, GIs are a signal to consumers that they can associate the origin of a
product with place-related brand value. But evaluating BGIs requires an understanding of how BGIs
are different from conventional single-product or product-line brands. BGIs are different in that they
consist of a collection of brands that should be approached as a brand system. Organizations typically
manage collections of brands as either a set of unrelated brands linked by a common corporate identity
(the “house of brands” approach) or as brands that, despite some differences (e.g. flavours), all have
a common master brand association (the “branded house” approach). However, specific collective
trademark or certification trademark BGIs usually vary far too much to be treated as a branded house.
They can cover many different brands that are otherwise themselves branded quite differently.
A brand system must consider this kind of variation across supported brands. Figure 1 illustrates the
idea of a brand system with GI products/services. At a high level all brands in the system make use of
a BGI. But the BGI is incorporated into the lower-level user brands that are associated with different
brand meanings. The key is that there is synergy such that the BGI contributes to the value of the lower-
level brands and the lower-level brands in turn affect the value of the BGI. An evaluation of the BGI must
consider both levels.
BGIs are not sold or licensed in a way that makes a monetary valuation based on market value
meaningful. Instead, they are evaluated as a financial asset controlled by the holder. The value of this
asset is determined by the system, the value of the higher-level master BGI and the aggregate lower-
level value of all the brands using a specific mark and/or collective or certification trademark.
Consistent with ISO 20671-1, the evaluation of a BGI should consider both brand strength and brand
performance. Brand strength evaluates how positive or negative the brand is in its potential to affect
customers. There are five dimensions of brand strength, with multiple possible alternative indicators
of each: consumer/other stakeholder, market, financial, economic and political environment and legal.
Brand performance evaluates the brand’s impact in the market. Brand strength is potentially correlated
with brand performance, but it is possible that a strong brand can have a weak impact in the market
because of other factors that outweigh the brand. Likewise, a weak brand can have a strong impact.
0.4 Boundary and scope of BGIs
GIs generally refer to brands that have been registered either by the national or regional authority,
which implies protection of certain means from these authorities.
The largest population of GIs is foodstuffs and agricultural products that fall into the protected
categories of most countries and regions. Other GIs cover, e.g. textile to porcelain goods, and from
handicrafts to watches, and the services sector, depending on the legal interpretations of the competent
authorities.
A BGI refers to a brand named after a specific geographical region where it is either wholly originated or
finally processed, including a brand that is not yet registered as a GI or does not fall into the GI category
laid down by the governing authority. There is no definite limit as to the product’s nature, although in
most cases it is not an industrial product whose brand value lies in its trademark rather than the name
of the product’s geographical origin.
Brand evaluation —
Part 3:
Requirements and recommendations for brands related to
geographical indications
1 Scope
This document specifies the methodology, fundamentals and principles, including elements and
dimensions, to evaluate brands related to geographical indications (BGIs) with methodology based on
ISO 20671-1.
It is applicable for both originators of BGIs to make investment decisions and users and potential users
of a BGI to decide whether to adopt the BGIs.
This document is intended to be used in conjunction with ISO 20671-1 and ISO 10668.
This document can be used in internal and external evaluation of BGIs.
2 Normative references
The following documents are referred to in the text in such a way that some or all of their content
constitutes requirements of this document. For dated references, only the edition cited applies. For
undated references, the latest edition of the referenced document (including any amendments) applies.
ISO 10668, Brand valuation — Requirements for monetary brand valuation
ISO 20671-1, Brand evaluation — Part 1: Principles and fundamentals
Note 3 to entry: In this document, BGIs are used to refer to both legally protected and unprotected brands.
4.1 General
The principles of a BGI evaluation shall focus on evaluating the added value of the region to the user
brand. These evaluations shall be conducted in accordance with ISO 20671-1 and ISO 10668.
The evaluator shall assess the BGIs on both elements and dimensions (see 5.1 to 5.3) using the relevant
indicators and justify their inclusion and relevance to the brand.
The internal or external evaluator shall conduct a brand evaluation following principles contained in
this document.
The evaluator shall justify the strength of the indicator, the sources of data that inform it, the frequency
of data accessibility and its limits in reflecting the contribution of the elements and dimensions toward
brand value.
Independent experts should be drawn upon to aid in an objective audit of the indicators.
Furthermore, the evaluation shall reflect the following principles:
— The brand evaluator shall be conscious of the fact that different stakeholders can have different
importance, represented by relative weight, for the elements and dimensions, and have differing,
representative indicators that are used for evaluating the specific stakeholder group.
— The brand evaluation shall be conducted using the multiple elements and dimensions of differing
perspectives. Different elements and dimensions may use different methods to evaluate the impact
of the elements and dimensions with the relevant stakeholder group. Qualitative analysis methods
and quantitative analysis methods should both be used in the process of brand evaluation.
NOTE The ownership and the use of rights of BGIs are mostly separated.
4.2 Transparency
Brand evaluation processes shall be transparent. This requirement shall include disclosure and
quantification of evaluation inputs, outputs, assumptions and risks.
4.3 Consistency
To achieve comparable results in an evaluation over time, the methodology used for the evaluation shall
be consistent. If the methodology is changed, changes shall be noted and the ability to compare results
explained.
4.4 Objectivity
The evaluation shall be performed impartially.
5.1 General
The fundamentals of a BGI evaluation shall focus on evaluating brand value using both elements and
dimensions, thereby determining brand strength, brand performance, and financial results. Elements
shall determine the input which the brand operating entities allocate to the brand, while dimensions
shall measure the external reactions to the brand.
Applicable indicators shall be determined according to the purpose of the brand evaluation and
different external regulating environments. Each of them can require a different type of analysis. They
shall be compared with major competitors or alternative brands. Other indicators shall be determined
based on the local associations provided by the region. They shall be analysed with a view towards
their contribution to user brands and sustainable development.
Lists of example indicators for elements and dimensions for BGIs are provided in Annex A.
The United Nations Sustainable Development Goals (SDGs) should be included in the policies of the
development of brands related to GIs.
Tangible elements are identifiable and directly measurable resources which are controlled by the BGI
entity.
Quality elements are resources allocated to quality commitment, quality management and perceived
quality.
Service elements are activities which aim to satisfy the needs of customers and enhance brand
perception and engagement.
The legal dimension is the brand’s status of protection and the scope of brand rights and their
ownership.
The customer/stakeholder dimension is both the psychological and behavioural perception and
response of customers. Other stakeholders also should play an important role in brand evaluation.
NOTE These indicators often require direct measurement with customers through market research
regarding the functional, emotional, and/or experiential qualities associated with the brand.
The market dimension is the actual status of the market and opportunities for the development of a
brand and the structural limitations that market conditions may impose.
The economic and political environment is the macro environment in which a brand is operating. This
dimension shall include the indicators of favourable or unfavourable external forces or events outside
of the market itself.
The financial dimension is the financial status and the financial potential of a brand. This information
shall be derived from profit and loss accounts and balance sheets or other financial reports of BGIs.
6.1 Personnel
The brand evaluator should be independent and have relevant professional experience and brand
evaluator qualifications.
The evaluation purpose should be identified by assessing the aim, the end-user of the evaluation and
the characteristics of the target BGIs.
The evaluation procedures should take into account the specific objectives in regard to goals, end-users
and characteristics of the target BGI to ensure accuracy and usefulness of the evaluation and should be
represented in the format of the evaluation report.
Examples of objectives to consider in the determination of evaluation procedures are given in Annex D.
6.2.2 Analysis of the elements and dimensions and selection of the relevant indicators
The brand evaluator should develop an appropriate method using ISO 10668 and ISO 20671-1.
The method of the BGI evaluation should lead to brand strength, brand performance and improved
financial results.
The evaluator of BGIs should ensure that the data required for the evaluation are available in an
adequate form and quality with a commercially reasonable effort relative to competitors. The data
should be provided by qualified external parties.
In the course of the evaluation, all the input data and assumptions should be checked for relevance,
consistency, accuracy and validity at the evaluation date.
If data is lacking, the evaluator should make estimates and assumptions for individual categories in
exceptional cases. These estimates should be clearly declared and documented in the course of the
evaluation.
6.2.5.1 The results of the BGI evaluation exercise can be referred to as a point-in-time representation
based on applying appropriate and relevant indicators.
6.2.5.2 As indicated in the discussion of elements and dimensions, it is recommended that brand
evaluation reporting be considered within the context of the broader market and the competitive
brands. This can be done by either direct comparison of the data, normalizing the information against a
simple scale, e.g. to a brand strength indicator, or another method that has been agreed upon between
the evaluator and the brand-using entity reviewing and applying the findings.
6.2.5.3 Potential applications of the BGI evaluation can take the form of an indicator scorecard,
scenario analysis framework, brand-tracking program, or as an input to an analysis of brand
performance and brand valuation. Additionally, it can be applied to any other purpose deemed useful
by the evaluator and the brand using entity.
This continuous improvement can begin with conformity at any step of the brand evaluation process.
Execution of the continuous improvement cycle should be done at least at the time of evaluation, but
value can often be derived by reviewing progress more frequently. Branding expenditures should be
considered as investments and the financial return should be monitored over time.
Financial valuation should be according to ISO 20671-1 and ISO 10668 with specific requirements
added for BGIs.
For a self-assessment checklist for BGIs see Annex B.
Annex A
(informative)
Tables A.1 and A.2 give examples of indicators to illustrate the elements and dimensions of brand
evaluation.
— Government spending
— Cultural infrastructure
— Legal costs
— Number of producers
— Number of providers
— Management systems
— Traceability system
— Consistency of quality
— Perceived quality
Service — Customer service satisfaction
— Service access
— Range of services
— Communications
— Trademark/patent/copyright classes
— Image index
— Customer/Stakeholder satisfaction
— Rate of employees
Market — Market potential and size (in volume/ value)
— Media exposure
— Global dimension
— Distribution channels
— Number of counterfeits
— Economic benefit
— Potential risks
Financial — GI revenue per GDP
— Budget surplus/deficit
— Cash flow
— Communication budget
— Tax contribution
— Channel investments
— Risk rate
Annex B
(informative)
Table B.1 gives an example of a self-assessment checklist that can be used to identify weak and strong
areas related to the BGIs:
Annex C
(informative)
Annex D
(informative)
D.1 Objectives
The following list gives some examples of objectives to be considered in determining the evaluation
procedures:
a) objectives
1) to improve the fame and reputation of the geographical origin;
2) to strengthen the cohesion and centripetal force of regional industry cluster;
3) to boost improvement of quality and efficiency;
4) to help upgrade the competitiveness of a country or region.
D.2 End-user
Bibliography
ICS 03.140
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